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Reuters
Reuters
Business
By Ahmed Rasheed

Iraqi PM walks diplomatic tightrope in crackdown on dollars smuggled to Iran

A man walks past currency exchange shops in Baghdad, Iraq, January 22, 2023. REUTERS/Ahmed Saad

Under pressure from Washington to stem the flow of dollars into Iran, Iraq's prime minister sent elite counter-terrorism forces more accustomed to battling Islamist militants to shut down dealers smuggling the currency to the Islamic Republic.

Saturday's raids in Baghdad represent an early test for Prime Minister Mohammed al-Sudani, who took office in October after more than a year of political paralysis and must now tread a delicate diplomatic path.

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